Last Week’s Market Movement Sends Bitcoin Holders into Loss
Last week’s market movement has resulted in short-term Bitcoin holders facing losses as the asset fell below key technical indicators. In Glassnode’s Aug. 21 on-chain report, it was revealed that 88.3% of the short-term holder supply, equivalent to 2.26 million BTC, is now held in an unrealized loss.
- Significant volumes of spot supply had a cost basis near or above the current price
- 12.8% of the supply, or 2.48 million BTC, fell into an unrealized loss during the 10% BTC slump
- Long-term holders remain unfazed and unresponsive, which is typical behavior during bear market hangover periods
- Bitcoin dropped below key technical indicators, including the 200-day and 200-week simple moving averages
- A major derivative deleveraging and flush out is believed to have caused the crash
Despite speculation about BlackRock loading up on BTC at lower prices, market sentiment remains uncertain. BTC is currently trading flat at $26,032, finding support at $26,000. Analysts suggest a potential drop to $24,800, but approval of a spot Bitcoin ETF could quickly send the asset back to $30,000.
Hot Take: Short-Term Bitcoin Holders Face Losses as Bear Market Lengthens
Last week’s market movement has had a negative impact on short-term Bitcoin holders, with the majority now facing unrealized losses. The bear market appears to be lengthening, causing uncertainty and volatility in the market. Long-term holders have remained relatively unaffected, indicating their typical behavior during bear market periods. Bitcoin has also dropped below key technical indicators, further adding to the bearish sentiment. While there is speculation about BlackRock’s involvement and the potential for a spot Bitcoin ETF, the market outlook remains uncertain. Short-term holders may continue to face losses while the market stabilizes.
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